Dash Buttons are just the start for Amazon's next growth strategy

I have found it very interesting to see the rapid growth of AmazonDash buttons but was surprised to see they have brought over 100+ brands on-board now, it seems that these are more than just a fun little experiment for the company.

There are a few interesting aspects about these Dash buttons

• They change user behaviour to rely on Amazon
• They are branded (top of mind awareness)
• There is only room for one, first mover advantage in consumers home
• They are only for Amazon Prime members (increase value of Prime service)
• Longer term it can be a key part of retaining Prime members 
• They reduce the habit of consumers to price shop (rely on Amazon having best price)
• They cut out other retailers and increase their home delivery service volume
• It makes re-purchasing products simpler and easier...
• They offer $4.99 credit after your first order to entice you to use them atleast once...

What are the core verticals Dash buttons are targeting?

• Household - Paper towels, toilet paper, Glad, Clorox, Laundry
• Beverages - Redbull, Smartwater, Illy Coffee, Soda, Gatorade
• Grocery - Cereal, Doritos, Orville Popcorn
• Health & Personal Care - Condoms, Deodorant, Hygiene products, Shaving Products
• Beauty - Makeup, Beauty products, Skin care, 
• Pets - Pet food, cat litter 
• Baby - formula, nappies, baby wipes

Dash is bigger for Amazon than just a button

Amazon is building a whole new business via the Dash platform, including their Amazon Dash Replenishment Service (DRS) that allows any web connected devices to automated order physical goods from Amazon when your supplies are running low.  The first product launched was the Brita Infinity Smart Water Pitcher that automatically re-orders its own replacement filters.

It seems that other brands have jumped onboard with the DRS service to drive more sales of their official refills.  The initial brands that are working to integrate with DRS include:

• Brother printers - orders ink and toners
• Samsung printers - orders new toners
• Gmate SMART Blood Glucose meters - orders testing supplies
• Whirlpool Washer - can order laundry supplies
• GOJO/Purell Hand Sanitizer - can order soap and hand sanitizer
• Obe - orders dog food
• Petnet Smart feeder - orders pet food
• Sutro wireless pool monitor - orders pool chemicals
• August Smart Lock - orders replacement batteries

I can imagine some of these services could also just send you an email to remind you but you probably ignore or unsubscribe.  But it's great for these brands as it allows them to ensure you are buying their preferred or official refills so just that benefit makes a heap commercial sense to them to automatically re-order via DRS.

I can imagine with the Dash platform that Amazon can significantly increase the volume of sales they can push through their warehouses but also do three key things:

1. Push more offline purchases online through Amazon
2. Understand users purchase behaviours more
3. Increase stickiness of Amazon platform for vendors/customers

So I will be interested when Amazon might expand their Dash button service beyond Prime users but if I was Walmart or Costco I would be worried!